SIPP benefits after death, and nominations

Marcon

https://forums.moneysavingexpert.com/discussion/comment/82173849#Comment_82173849

It's miserable that you have this going on after your recent sad bereavement, and hard to understand why the provider can't immediately understand/explain the terms of its own policy!

I'm not sure why you are posting here if you have an IFA advising you, who presumably has sight of your policy and should be able to confirm the terms of your wife's SIPP and/or contact the provider and ask them to clarify anything which is unclear. Have you actually asked them to do so, or simply investigate the possibility of what might prove to a be a wholly needless transfer?

Nobody here has seen the policy, nor do you wish to share who the provider is - and even if you did, it still wouldn't ensure an accurate response. That being the case, could I suggest that a practical way forward might be to contact MoneyHelper? Their help is free, usually very speedy, and they have a great deal of technical expertise.

https://www.moneyhelper.org.uk/en/pensions-and-retirement/pension-problems

Sending them a copy of the SIPP policy would enable them to give their views on the options available under the terms of that policy

meridian30

https://forums.moneysavingexpert.com/discussion/comment/82173884#Comment_82173884

It shouldn't be a problem, it's a pretty standard thing to do, and the managers haven't said it's causing them a problem.

meridian30

https://forums.moneysavingexpert.com/discussion/comment/82173860#Comment_82173860

They haven't said that (as the primary nominee) I'd be barred from taking a beneficiary drawdown pension, and I've read the scheme rules carefully. I think they are just confused, in part, and also faced with a possible compensation and regulatory issue.

meridian30

https://forums.moneysavingexpert.com/discussion/comment/82173927#Comment_82173927

That's a very helpful idea, I was resigned to having to go to the Pensions Ombudsman (who has a 12 month backlog), but that looks as though it could be a lot quicker. Thank you.

Marcon

The managers have agreed that I can waive my nomination, but are saying that our children can only receive their 50% each as a cash lump sum, which will partly be taxed at 45%.

I'm not keen to add to speculation on what the policy might or might not say, but I do have one thought which might help and should be straightforward to check. Is this quite an old SIPP and the original policy didn't support drawdown?

meridian30

https://forums.moneysavingexpert.com/discussion/comment/82174220#Comment_82174220

Started pre-2010, but has had the tax-free lump sum taken, and there have been occasional drawdowns as well, so I don't think there are any problems with drawdown as such, the managers haven't said that's the problem.

DRS1

https://forums.moneysavingexpert.com/discussion/comment/82174339#Comment_82174339

Perhaps people are talking about two different forms of drawdown - drawdown by the member is what your wife has done but beneficiary drawdown (which is what @Marcon is referencing) is a different kettle of fish. Still if they have said beneficiary drawdown would have been available for you then it should be available for the children as well. It shouldn't make any difference that you were the primary nominee and they were secondary - what should count is the trustee exercising the discretion in their favour.

DRS1

Oh and 2010 sounds very modern to me but it does predate the "pension freedoms" so it could qualify as "old" from that point of view.

Marcon

https://forums.moneysavingexpert.com/discussion/comment/82174339#Comment_82174339

Sounds as if this is definitely one for MoneyHelper if your IFA can't clarify. I suggest you include this information when you contact MH.

meridian30

https://forums.moneysavingexpert.com/discussion/comment/82174517#Comment_82174517

That's tomorrow's task, today is fettling a new PC :-)